Indonesia adds US$27 bil of spending to absorb price shocks

19/5/2022 4:21:00 PM

Indonesia adds US$27 bil of spending to absorb price shocks - Bloomberg

Indonesia adds US$27 bil of spending to absorb price shocks - Bloomberg

(May 19): Indonesia is increasing state spending to fund subsidies that would keep energy prices steady despite the global surge in fuel cost, helping quell inflationary pressures that risk derailing its economic recovery.The government sees a 392 trillion rupiah (US$27 billion) boost to total expenditure to reach an estimated 3,106 trillion rupiah this year. That’s partly to account for a 56% jump in subsidies to the 208.9 trillion rupiah meant to absorb increases in energy costs for Indonesians, said Finance

(May 19): Indonesia is increasing state spending to fund subsidies that would keep energy prices steady despite the global surge in fuel cost, helping quell inflationary pressures that risk derailing its economic recovery.The government sees a 392 trillion rupiah (US$27 billion) boost to total expenditure to reach an estimated 3,106 trillion rupiah this year. That’s partly to account for a 56% jump in subsidies to the 208.9 trillion rupiah meant to absorb increases in energy costs for Indonesians, said Finance Minister Sri Mulyani Indrawati on Thursday.

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A (May 19): Indonesia is increasing state spending to fund subsidies that would keep energy prices steady despite the global surge in fuel cost, helping quell inflationary pressures that risk derailing its economic recovery.WASHINGTON: The World Bank on Wednesday (May 18) announced actions it plans to take as part of a comprehensive, global response to the ongoing food security crisis, with up to US$30 billion financing in existing and new projects, Xinhua reported.A TOKYO (May 17): Japan's cabinet has approved a ¥2.Telegram channel for the latest updates.

The government sees a 392 trillion rupiah (US$27 billion) boost to total expenditure to reach an estimated 3,106 trillion rupiah this year. That’s partly to account for a 56% jump in subsidies to the 208. It will include efforts to encourage food and fertiliser production, enhance food systems, facilitate greater trade, and support vulnerable households and producers.9 trillion rupiah meant to absorb increases in energy costs for Indonesians, said Finance Minister Sri Mulyani Indrawati on Thursday. The additional spending comes the day before the government announces growth figures for the first quarter that are expected to show Japan's recovery stalling. Payments to compensate state-owned oil company PT Pertamina and state utility PT Perusahaan Listrik Negara also surged 15-fold from the initial estimate to 293. In addition, the World Bank's existing portfolio includes undisbursed balances of US$18.5 trillion rupiah to help keep fuel and electricity costs steady.2 per cent in April after declining in March, the Commerce Department said.

“The state budget will remain as a shock absorber, hence the government has decided some administered prices will not be changed,” Indrawati said in the parliamentary committee meeting. "Food price increases are having devastating effects on the poorest and most vulnerable," said World Bank Group President David Malpass. With the measures, Kishida is showing his willingness to act promptly to address rising discontent over soaring energy and food prices while demonstrating his desire to keep the economy on track for recovery. While a revenue windfall from the commodity exports boom should partially offset the spike in spending, the move is still set to drive the budget deficit to 4.5% of gross domestic product this year, she said. He urged countries to make concerted efforts to increase the supply of energy and fertiliser, help farmers increase plantings and crop yields, and"remove policies that block exports and imports, divert food to biofuel, or encourage unnecessary storage". That’s a sizable jump from the roughly 4% estimated earlier, though still narrower than the 4."We'll make efforts to quickly and appropriately enact the budget policies, while continuing to seek fiscal health.65% notched in 2021. The healthy US consumer has underpinned the strong recovery in the world’s largest economy following the slowdown during the Covid-19 pandemic, but the surge in demand also has strained supply chains and helped push inflation to its fastest rate since the early 1980s.

Southeast Asia’s largest economy is flexing its fiscal muscle at a time when its neighbours are struggling to tame prices without blowing out their government debt. Increased subsidies, which have been crucial in cooling inflation so far this year, should also carve out space for the central bank to keep interest rates at record lows to aid economic growth. Japan's inflation is far below levels in the US and Europe, but economists expect it to have hit a long-targeted 2% level last month. Highlights: State revenue may increase to 2,226 trillion rupiah this year, from the 1,846 trillion rupiah estimated in the budget. The oil price assumption in the state budget was adjusted to US$95-US$105 a barrel, from US$63. Yield of the benchmark 10-year government bond is seen higher at 6. While it is widely expected to pass, given Kishida's ruling coalition majority, it is still likely to face criticism that it adds ¥1. The biggest increases in the month were for electronics, home furnishings and clothing, while restaurants and bars saw a 2.

85%-8.42% this year, while the rupiah exchange rate is estimated at 14,300-14,700 a dollar. The government is weighing a plan to raise power tariffs for consumers who use 3,000 volt amperes and higher. Subscribe to Mid-day email alert We deliver news to your inbox daily. Subscribe to Mid-day email alert We deliver news to your inbox daily .